On March 7, 2024, Deputy Attorney General Lisa Monaco announced a new DOJ pilot program designed to offer financial rewards to individual whistleblowers who report certain criminal conduct to the DOJ. This pilot program aims to cover the full range of corporate and financial misconduct that the DOJ prosecutes, supplementing similar programs already in place.
Key Features of the New DOJ Pilot Program
Whistleblower Rewards
The program offers monetary rewards to whistleblowers who are the first to report specific misconduct. It’s crucial to note that only the first reporter of misconduct is eligible for payment, creating a “race to the DOJ.”
Incentive for Voluntary Disclosure
This race to report incentivizes businesses to voluntarily disclose any misconduct before a whistleblower does. This proactive approach can potentially mitigate the consequences for the business.
Implementation Timeline
The DOJ has planned a 90-day sprint to develop and implement the program, with a formal start date anticipated in the summer of 2024.
Funding Source
The funding for this program will come from civil and criminal forfeitures resulting from the program itself.
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What Does the DOJ Whistleblower Program Mean for Your Business:
Given the new program, it’s more crucial than ever for businesses to have a robust compliance program in place to detect and prevent misconduct. Here are some steps to consider:
- Strengthen Compliance Programs: Ensure your business has a comprehensive compliance program that can effectively detect and prevent misconduct.
- Voluntary Self-Disclosure: If you detect any misconduct, consider making a voluntary self-disclosure to the DOJ before a whistleblower reports it. This proactive step could be in your best interest since the new program rewards only the first report of misconduct.
- Seek Legal Guidance: This is a complex area of law that is still developing. The specifics of your situation can greatly impact the best course of action. The first step is to contact an attorney to help you plan what to do next.
This new DOJ program underscores the importance of having strong internal controls and being proactive in addressing potential issues.
By staying ahead of potential whistleblowers, Texas businesses can better manage risks and maintain compliance with legal standards. If you have questions or need assistance, don’t hesitate to contact a legal professional for guidance.
